An appraisal is a licensed appraiser's opinion of a property's market value based on comparable recent sales of similar properties in the neighborhood. A Broker Price Opinion (BPO) is the estimated value of a property as determined by a real estate broker or other qualified individual or firm.
At Builders Capital, Valuations (appraisals or BPOs) are used to validate that both the current (as-is) value and the projected (after repair) value of the property. Each property must have a valuation associated with it. Independent Valuations are an important aspect of mitigating risks for our portfolio, especially as we continue to expand to new markets.
- All loans must have a valid and current (less than 120 days old) appraisal prior to closing.
- Properties with a committed loan amount under $400k may have an Interior Broker Price Opinion (BPO) or Interior Evaluation instead of an appraisal.
- Builders Capital will NOT request or accept recommendations directly from the Borrower. We must ensure than any appraisals are truly independent of both our interests and the Borrower's.
- Ordered appraisals must be a Residential Appraisal Report, and include As-Is and As-Repaired values.